Life Insurance

Life insurance is defined as a contract between the policy holder and an insurance company where in exchange for premium payments, the insurance company pays out a death benefit to the beneficiaries when the insured person passes away. Life insurance is definitely worth getting to help protect your loved ones from a potential financial catastrophe in case that you, the policy owner, dies. Especially if you are the main income earner in your household. Life insurance is also worth getting for business owners to protect their business, investors, business partners, employees, etc.

The answer is the sooner, the better! The younger that you are and the better your health is, the cost of life insurance will be much lower. The older you get and if your health declines, the cost of life insurance can be more expensive. Today, Life Insurance is more important than ever as it can be used as a wealth building tool for retirement, for your business and implement tax strategies. Also, very important to own life insurance when there are changes in your life such as getting married, having children, starting a business, owning property and much more. 

 Monthly Cost for $1 Million Term Life Insurance policy for a 40 year old man in good health & non smoker:

• 10 year term life insurance between $23 to $30 per month
• 20 year term life insurance between $35 to $50 per month
• 30 year term life insurance between $75 to $100 per month

Monthly Cost for $1 Million Term Life Insurance policy for a 40 year old woman in good health & non smoker:

• 10 year term life insurance between $18 to $25 per month
• 20 year term life insurance between $30 to $45 per month
• 30 year term life insurance between $63 to $75 per month

**Rates can depend an/or change by different insurance carriers and based on your medical history. Rates do not reflect any particular insurer. 

Disability insurance, also known as income protection, is very important to have especially if there is a high possibility that the policyholder gets injured while on the job. Statics show that one in four people get disabled during their working career. Disability Insurance is a type of coverage that replaces a portion of your monthly income (60% to 80%) if injury or illness prevents you from working. It provides financial security and peace of mind for the policyholder and their family when or if the policyholder is disabled.

When it comes to learning about life insurance, you will see a wide range of life insurance products. However, there are 4 types of life insurance products which are term life insurance, variable universal life insurance (VUL), universal life insurance (UL) and whole life insurance. Variable Universal Life, Universal Life and Whole Life are also known as permanent life insurance. 

Term Life insurance is the lowest cost out of the different types of life insurance. Term life insurance is bought for a specified term such as 10 years, 20 years or 30 years. What this means is that if you buy a term life insurance policy, the insurance company will pay a death benefit to the beneficiaries if the policyholder dies within the term agreed upon.

 Permanent Life Insurance is a life insurance policy that does not expire as long as the policy is in force. Permanent life insurance combines a death benefit with a cash-value component that can allow the policyholder to build up a substantial amount of tax-deferred savings over time. Unlike term insurance which lasts for a specific period and no cash value features, permanent life insurance is designed for life long protection and potential for retirement income. 

Using life insurance to build wealth and protect their wealth has been a concept used for many years and even hundreds of years by individuals and businesses. 

Who can benefit from Permanent Life Insurance? 

• Children, Individuals and Families
• Business Owners
• Corporate Executives
• Doctors/Physicians
• Professional Athletes
• High Net-Worth Individuals

Many people today use permanent life insurance as a wealth building tool as well as to protect their family. This is due to many features and benefits that Permanent Life Insurance provide such as:

• Life Long Protection: As long as your permanent life insurance is in force, you are able to protect your family for as long as you live and not for a determined period.
• Cash Value: In life insurance, cash value offers liquidity. You are able to access your policy without a penalty or pay taxes before age of 59 1/2. You can benefit from building cash value in your permanent life insurance for retirement purposes and  to pay your life insurance premiums.
• Tax Deferred Growth: Permanent life insurance offers a means to accumulate tax-advantaged savings that can be accrued during the policy owner’s lifetime.
• Income-Tax-Free Death Benefit: A significant life insurance advantage is the death benefit payable to a beneficiary, which is generally income-tax-free.
• Business Considerations: Life insurance can act as a funding mechanism to cover several business contingencies. Situations in which it can be applied include business continuity, succession plans, buy/sell agreements for partnerships, or protecting a key employee.
• Holistic Financial Plan: Insurance should be a critical component of this approach, which factors in the actual plans and goals of a client when making decisions on financial models. It’s responsive to a client’s life events, such as divorce, unemployment, purchasing a home, or major illness.
• Retirement Planning: Life insurance can be a vehicle for supplemental retirement income. Term life insurance provides cost-effective basic protection upon death, however permanent life insurance has a cash value component that can accumulate and be used for tax free income. 
• Estate Planning: Life insurance can be used in estate planning to address debt, taxes, income replacement, probate, or charitable contributions. Several policies are applicable, including joint life that insures two people, with the death benefit payable upon the death of the second insured. Irrevocable insurance trusts can be created to act as a policy beneficiary to exclude policy proceeds from an estate.
• Charitable Giving: Life insurance proceeds are ideal for a charity contribution because they are not subject to income and estate taxes or probate costs.

Get your life insurance quote today!